Definition of Arrears:
Liability or obligation not met on the due date. Loan payments are in arrears the day after they are due. Also called arrearage.
Arrears, or arrearage in certain cases, can be used to describe payments in many different parts of the legal and financial industries, including the banking and credit industries, and the investment world. The term can have many different applications depending on the industry and context in which it is used.
Arrears is a financial and legal term that refers to the status of payments in relation to their due dates. The word is most commonly used to describe an obligation or liability that has not received payment by its due date. Therefore, the term arrears applies to an overdue payment. If one or more payments have been missed where regular payments are contractually required, such as mortgage or rent payments and utility or telephone bills, the account is in arrears. Payments that are made at the end of a period are also said to be in arrears. In this case, payment is expected to be made after a service is provided or completed—not before.
Synonyms of Arrears
Arrear, Arrearage, Back debts, Back payments, Bouncing check, Decline, Defalcation, Default, Defectiveness, Deferred payments, Deficit, Deficit financing, Delinquency, Dollar gap, Due, Failure, Falling short, Imperfection, Inadequacy, Indebtedness, Inferiority, Insufficiency, Liability, Overdraft, Short measure, Shortage, Shortcoming, Shortfall, Slump, Underage
How to use Arrears in a sentence?
- Trevor was having trouble paying his rent again this month and he was so far in arrears already that he feared he probably would lose his apartment once and for all.
- Arrearage applies to dividends that are due but have not been paid to preferred shareholders. .
- During a financial audit, sometimes finance professionals discover that there are accounts in arrears that need to be brought current to improve the companys financial stability.
- Arrears is a financial and legal term that most commonly describes an obligation or liability that has not received payment by its due date.
- Being in arrears may not have a negative connotation, as in cases when payment is expected after a service is provided or completed, not before.
- This person paid too much taxes one year, then not enough the next, the tricky accounted we experienced was upon calculating the arrears .
- Annuities are called annuities in arrears (or ordinary annuities) when payments are due at the end of the period.
Meaning of Arrears & Arrears Definition